Iran has denied engaging in direct negotiations with the U.S. regarding the Strait of Hormuz, which dampens hopes for a swift resolution to tensions in the region. President Trump indicated that the U.S. is only 'semi-negotiating' with Iran, suggesting a strategy of waiting for economic pressures to escalate.
This uncertainty comes as the stock market has seen its biggest weekly gains since April, with all three major indexes recording consecutive wins.
In corporate news, Berkshire Hathaway reported a 16% increase in operating earnings for the second quarter, driven by strong performance in its energy, railroad, and manufacturing sectors, while also ending a streak of being a net seller of stocks with nearly $20 billion in purchases. However, its stock buyback of $4.5 billion fell short of some investors' expectations.
Additionally, a new analysis revealed that Trump earned close to $60 million from foreign real estate licensing, raising ethical concerns about potential conflicts of interest. Meanwhile, House Democrats are urging AI companies to testify before Congress amid rising security concerns linked to recent hacking incidents.
Lastly, Shein is facing challenges as it prepares for its Hong Kong IPO, reporting a 14% drop in U.S. sales due to tariff-related price increases, with potential further declines anticipated in Europe following changes to duty-free shipping regulations